Sales v Profit Maximisation Model Solution [Virtual Learning Arcade]
Sales versus Profit Maximisation |
|
The Input Parameters
|
| Price Elasticity of Demand | 2.00 |
| Fixed Costs (£) | 100.00 |
| Variable Costs (£) | 25.00 |
| Desired Profit Level | 50.00 |
Output and price levels |
| Sales Maximisation Output Level |
| Quantity (Q) | 43.03 |
| Price (£) | 28.49 |
| Total Revenue (TR) | 1225.69 |
| Total Cost (£) | 1175.69 |
| Profit (£) | 50.00 |
| Profit Maximisation Output Level |
| Quantity (Q) | 25.00 |
| Price (£) | 37.50 |
| Total Revenue (TR) | 937.50 |
| Total Cost (£) | 725.00 |
| Profit (£) | 212.50 |
Submitted by bized on Wed, 14/03/2001 - 13:00
